TIDMCNS
RNS Number : 2863J
Corero Network Security PLC
26 April 2022
26 April 2022
Corero Network Security plc (AIM: CNS)
("Corero," the "Company" or the "Group")
Full year results
Record performance, strong customer traction and maiden
profit
Corero Network Security plc (AIM: CNS), a leading provider of
real-time high-performance, automatic Distributed Denial of Service
("DDoS") cyber defense solutions, announces its audited results for
the year ended 31 December 2021.
Financial Highlights:
-- Strong revenue growth in the period:
o Revenues increased 24% to $20.9 million (2020: $16.9
million)
o Annualised Recurring Revenues(1) ("ARR") up 31% to $12.8
million as at 1 January 2022 (1 January 2021: $9.8 million)
o Revenue from DDoS Protection-as-a Service (DDPaaS) contracts
increased to $4.0 million (2020: $2.9 million)
-- Gross margins of 85% (2020: 77%)
-- EBITDA(2) of $4.0 million (2020: EBITDA loss of $1.4 million)
- a transformation of $5.4 million
-- Adjusted EBITDA(3) of $4.1 million (2020: loss of $0.6 million)
-- Profit before taxation of $1.4 million (2020: loss before taxation of $4.0 million)
-- Earnings and diluted earnings per share of 0.3 cents (2020: loss per share of 0.8 cents)
-- Net cash(4) at 31 December 2021 of $8.4 million (2020: $7.6 million)
Operational Highlights:
-- Significant financial and operational progress, leveraging
sales and marketing initiatives alongside established Strategic
Alliances and Channel Partners
-- Secured 44 new customers in the period (2020: 42 customers),
adding six new countries - Corero now active with customers across
47 countries worldwide
o 18 new customers added through Corero's strategic partnership
with Juniper Networks (2020: 17 new customers)
-- Strong growth supported by an expanding DDoS mitigation
marketplace , which continues to be fueled by the acceleration of
digitisation and the ongoing need for business continuity
-- ARR increased to $12.8 million, underpinning future earnings
growth and reinforcing the importance of Corero's solutions for our
customers
-- The Group continues to prioritise its market coverage, and
remains committed to ongoing investment across its technology
platform and teams' expansion to strengthen its market-leading
position
Outlook
-- Demand for DDoS mitigation continues to drive record level of
activity and pipeline and ongoing new-business momentum, as
reflected in both profit and ARR growth
-- Corero has enhanced its growth pillars to deliver sustainable
growth, namely market reach, operations, technology and financial
performance
-- The Group has very limited exposure to Russia and Ukraine
both operationally and from a revenue generation perspective, and
therefore expects the conflict to have little direct impact on
Corero
-- The Board is therefore confident in Corero's medium- to long-term growth prospects
Lionel Chmilewsky, Chief Executive Officer of Corero,
commented:
"I am delighted to be presenting an outstanding set of financial
results including new financial and customers traction. This is
testament to our customers appreciation of our solutions and
services, our talented people and know-how and our market-leading
solutions.
We have secured 44 new customers in 2021 and have, in parallel,
significantly strengthened the relationship and level of activity
with our strategic alliances and channel partners.
The expansion of our portfolio with the addition of our Edge
Threat Defense solution has also increased our addressable
market.
We have exited 2021 with a strong new international business
pipeline, and we continue to significantly invest in our Sales and
Marketing resources and capabilities to strengthen our market reach
and penetration.
I feel confident that our strategy and recent achievements will
allow us to deliver sustainable growth for our business in the mid
and long term.
(1) Defined as the normalised annualised recurring revenue and
includes recurring revenues from contract values of annual support,
software subscription and from DDoS Protection-as-a-Service
contracts.
(2) Defined as Earnings before Interest, Taxation, Depreciation and Amortisation.
(3) Defined as Earnings before Interest, Taxation, Depreciation
(including DDPaaS assets' depreciation which is charged to cost of
sales) and Amortisation, before share-based payments, and less
unrealised foreign exchange differences on an intercompany loan,
and PPPL forgiveness - Fully adjusted basis.
(4) Defined as cash at bank less debt.
The information contained within this announcement was deemed to
constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014, as amended by regulation 11 of the
Market Abuse (Amendment) (EU Exit) Regulations 2019/310, prior to
release of this announcement. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Enquiries:
Corero Network Security plc
Lionel Chmilewsky, Chief Executive Officer Tel: +44(0) 1494 590
Neil Pritchard, Chief Financial Officer 404
C anaccord Genuity Limited Tel: +44(0) 20 7523
(Nominated Adviser and Broker) 8000
Simon Bridges / Andrew Potts
Vigo Consulting Tel: +44(0) 20 7390
0230
Jeremy Garcia / Kendall Hill
corero@vigoconsulting.com
About Corero Network Security
Corero Network Security plc is a global leader in real-time,
high-performance, automatic DDoS cyber defense solutions. Both
Service and Hosting providers, alongside digital enterprises across
the globe rely on Corero's award winning cybersecurity technology
to eliminate the threat of Distributed Denial of Service (DDoS) to
their digital environment through automatic attack detection and
mitigation, coupled with network visibility, analytics and
reporting. Corero's industry leading SmartWall and SecureWatch
technology provides scalable protection capabilities against
external DDoS attackers and internal DDoS botnets in the most
complex edge and subscriber environments, while enabling a more
cost-effective economic model than previously available. Corero's
key operational centers located in Marlborough, Massachusetts, USA
and Edinburgh, UK, with the Company's headquartered in Amersham,
UK. The Company is also listed on the London Stock Exchange's AIM
market under the ticker CNS. For more information, visit
www.corero.com .
CHIEF EXECUTIVE'S STRATEGIC UPDATE AND OPERATIONAL REVIEW
Introduction
2021 was an extremely productive year for Corero, culminating in
the Group reporting a maiden profit before tax for the year ended
31 December 2021 of $ 1.4 million (2020: loss of $4.0 million). The
strong performance reflects the successful implementation of our
growth strategy, with the Group delivering continued sales momentum
across our operational footprint. We improved against all financial
KPIs in the year, achieving positive EBITDA ahead of market
expectations at $ 4.0 million (2020: negative EBITDA of $1.4
million).
In addition, and reflecting the ongoing demand for our products,
the Company increased revenues by 24% to $20.9 million in 2021
(2020: $16.9 million).
Corero also increased Annualised Recurring Revenues ("ARR")
during the year to $ 12.8 million as at 1 January 2022 (ARR at 1
January 2021: $9.8 million), which is a strategically important KPI
as it provides visibility and an underpin for future earnings.
This record performance, driven by our highly talented and
dedicated workforce, was achieved despite the ongoing backdrop of
the Covid-19 pandemic as well as the well documented global supply
chain challenges, which are also creating both opportunities and
challenges across our business.
The Board of Directors believes that Corero now has the
financial and operational platform from which to generate future
sustainable growth, with the Company's:
-- access to large and high growth end markets;
-- strong performance of its market-leading technology and global customer service;
-- proprietary intellectual property that underpins its solutions;
-- highly scalable revenue model alongside its relatively short
time to market for development; and
-- strong base of existing customers and strategic partnerships.
Strategic Progress
We made significant operational and financial progress in 2021,
placing our customers at the heart of everything that we do, as
well as leveraging our routes to market to ultimately grow market
share.
Key strategic progress included:
-- Increasing our international presence: during 2021, we
secured 44 new customers, adding customers in six new countries,
with customers in fifteen new countries added over the last two
years. Our solutions are now deployed with customers across 47
countries worldwide and across the continents.
-- Leveraging our existing strategic partnerships and developing
new ones: 18 customers were added through our partnership with
Juniper in the year and we continue to grow our business with GTT.
Furthermore, we made progress in 2021 towards the addition of new
and complementary alliances.
-- Intensifying our relationships with global, major and tier
one accounts: expanding with large existing customers and adding
new ones, with significant traction continued to be achieved in the
Hosting Providers, Service Providers and SaaS Enterprise
segments.
-- Better monetising our existing services and introducing new
services: we continue to explore and provide service initiatives
that enhance the protection and network security visibility for our
customers.
-- Amplifying our demand generation programmes: increased
advertising and marketing efforts have included thought leadership
pieces, webinar and other speaking opportunities and segment
targeted campaigns.
-- Continuing to increase our technological innovation
leadership: since the start of 2013 we have invested over $33
million to-date in R&D, and in 2021 we introduced 100G adoption
enablement, multi-tbps provider edge and flow detect and redirect
to deliver the widest portfolio of on-premises, and indeed other
solutions for our customers; an offering unrivalled by our
competitors.
DDoS Market Dynamics
DDoS attacks continue to be prevalent as a means of
cyber-attack, as camouflage for a ransomware attack and even with
Ransom-driven attacks.
The global DDoS protection market was worth c.$3.4 billion in
2021 and is expected to reach $6.8 billion by 2026 at a CAGR of
15.1%. Within this, c.$1.5 billion is the total addressable market
for Corero's SmartWall solution, with c.$715 million representing
our serviceable addressable market. To quantify this, there were
nearly 30,000 daily DDoS attacks recorded in the first half of
2021, a doubling in 24 months.
The DDoS mitigation marketplace continues to grow apace as a
result of the global acceleration of digitalisation and the growing
need for enterprises to ensure business continuity. This is set to
continue with the ongoing proliferation of IoT devices and the
roll-out of 5G networks and the increase in cloud services creating
a large expansion opportunity for Corero.
Financial Summary
The Group delivered a profit primarily due to increased revenues
coupled with ongoing margin improvement and maintained operating
expenses.
The Group generated revenues of $20.9 million in 2021 (2020:
$16.9 million), with total operating expenses at a similar level
before share-based payments of $ 16.1 million (2020: $16.4 million)
while continuing to invest in sales and marketing expansion and
R&D efforts.
-- Operating expenses net of capitalised R&D costs and
before depreciation and amortisation of intangible assets and
before share-based payments were $ 13.9 million (2020: $14.1
million). Capitalised R&D costs were $ 1.8 million (2020: $1.4
million)
-- Operating expenses include a foreign exchange gain of $ 0.2
million (2020: foreign exchange loss of $0.3 million)
-- Depreciation and amortisation of intangible assets was
slightly lower at $ 2.2 million (2020: $2.3 million)
-- The Company received a $0.6 million credit from the
forgiveness of the PPP loan previously received by its US trading
subsidiary in 2020 under the US CARES Act (2020: no credit
received).
The Company delivered its maiden positive EBITDA performance of
$ 4.0 million (2020: negative EBITDA of $1.4 million), a
transformation of $5.4 million, and Adjusted EBITDA of positive $
4.1 million (2020: negative EBITDA of $0.6 million).
In addition, Corero has achieved its maiden profit before
taxation of $ 1.4 million (2020: loss before taxation of $4.0
million) including amortisation of capitalised R&D costs of $
1.9 million (2020: $1.9 million). Profit after taxation was $ 1.5
million (2020: loss after taxation of $ 3.8 million), following a
UK R&D tax credit of $0.1 million (2020: two years' equivalent
of R&D tax credits of $0.2 million). The reported earnings per
share was therefore 0.3 cents (2020: loss per share 0.8 cents).
In terms of overall position, Corero held net cash of $8.4
million at 31 December 2021 (31 December 2020: $5.4 million; H1
2020 $3.3 million), comprising:
-- Cash at bank of $11.2 million as at 31 December 2021 (2020: $10.1 million); and,
-- Debt of $ 2.8 million (2020: $2.5 million)
In April 2021, the Company entered into a new banking facility
for up to GBP3.0 million (c.$4.1 million), the net proceeds of
which are being used for working capital purposes and our on-going
investment programme to support our growth strategy ahead.
Outlook
The demand for DDoS mitigation solutions continues to remain
strong in all our key territories and markets. The global
acceleration of hybrid working and internet usage due to the
Covid-19 pandemic, and now with the uncertainty created as a result
of current situation in Ukraine with consequent increased DDoS
attack activity, continues to accelerate these trends and the need
for Corero's solutions.
The Group has minimal exposure to Russia and Ukraine both
operationally and from a revenue generation perspective and
therefore we expect the conflict to have little direct impact on
our business. We also continue to monitor the semiconductor supply
chain shortage closely, and encouragingly there are signs that this
is beginning to abate globally.
2021 was a milestone year for Corero as we achieved our first
profit, supported by strong revenue growth and heightened demand
for our products. The Board of Directors believe that there is
significant scope to build on this success, leveraging our
technologically superior solutions and enhanced customer-centric
sales strategy, which is already yielding results. To this end,
Corero will continue to invest in people, marketing and its
solutions in the current financial year to provide an even wider
and stronger platform for growth for the future.
In summary, Corero has been building and enhancing its
operational and financial platform to deliver sustainable growth
given the market opportunities available to our business. This
gives us confidence in Corero's medium to long-term growth
prospects.
Lionel Chmilewsky
Chief Executive Officer
25 April 2022
Consolidated Income Statement
for the year ended 31 December 2021
Year ended 31 December Year ended 31 December
2021 2020
Continuing operations $'000 $'000
Revenue 20,895 16,877
Cost of sales (3,112) (3,832)
----------------------- -----------------------
Gross profit 17,783 13,045
Operating expenses (16,120) (16,431)
-------------------------------------------------------------------- ----------------------- -----------------------
Consisting of:
Operating expenses before depreciation and amortisation (13,928) (14,114)
Depreciation and amortisation of intangible assets (2,192) (2,317)
-------------------------------------------------------------------- ----------------------- -----------------------
Profit/(loss) from operations 1,663 (3,386)
Share-based payments (522) (359)
----------------------- -----------------------
Operating profit/(loss) 1,141 (3,745)
Other income 637 -
Finance income 1 16
Finance costs (406) (301)
----------------------- -----------------------
Profit/(loss) before taxation 1,373 (4,030)
Taxation credit 149 246
----------------------- -----------------------
Profit/(loss) after taxation 1,522 (3,784)
----------------------- -----------------------
Profit/(loss) after taxation attributable to equity owners of the
parent 1,522 (3,784)
----------------------- -----------------------
Basic and diluted earnings/(loss) per
share
Cents Cents
Basic earnings/(loss) per share 0.3 (0.8)
Diluted earnings/(loss) per share 0.3 (0.8)
----------------------- -----------------------
EBITDA(1) 3,970 (1,428)
Adjusted EBITDA - for DDPaaS depreciation, share based payments, unrealised foreign exchange
differences on intercompany loan and PPPL forgiveness(1) 4,150 (551)
(1) See note 2 for reconciliation.
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2021
Year ended 31 December Year ended 31 December
2021 2020
$'000 $'000
-------------------------------------------------------------------- ----------------------- -----------------------
Profit/(loss) for the year 1,522 (3,784)
Other comprehensive (expense)/income:
-------------------------------------------------------------------- ----------------------- -----------------------
Items reclassified subsequently to profit or loss upon
derecognition:
Foreign exchange differences (122) 216
-------------------------------------------------------------------- ----------------------- -----------------------
Other comprehensive (expense)/income for the period net of taxation
attributable to the equity
owners of the parent (122) 216
-------------------------------------------------------------------- ----------------------- -----------------------
Total comprehensive income/(expense) for the year attributable to
the equity owners of the
parent 1,400 (3,568)
-------------------------------------------------------------------- ----------------------- -----------------------
Consolidated Statement of Financial Position
as at 31 December 2021
As at 31 December As at 31 December
2021 2020
$'000 $'000
Assets
Non-current assets
Goodwill 8,991 8,991
Acquired intangible assets 4 9
Capitalised development expenditure 4,528 4,646
Property, plant and equipment - owned assets 796 1,099
Leased right of use assets 145 237
Trade and other receivables 859 694
15,323 15,676
Current assets
Inventories 57 98
Trade and other receivables 3,206 3,714
Cash and cash equivalents 11,201 10,140
----------------- -----------------
14,464 13,952
----------------- -----------------
Total assets 29,787 29,628
----------------- -----------------
Liabilities
Current Liabilities
Trade and other payables (4,068) (6,461)
Lease liabilities (94) (86)
Deferred income (4,677) (3,444)
Borrowings (1,421) (2,073)
(10,260) (12,064)
Net current assets 4,204 1,888
Non-current liabilities
Trade and other payables (143) (402)
Lease liabilities (78) (171)
Deferred income (2,147) (2,705)
Borrowings (1,356) (405)
----------------- -----------------
(3,724) (3,683)
----------------- -----------------
Net assets 15,803 13,881
----------------- -----------------
Capital and reserves attributable to the equity owners of the parent
Share capital 6,914 6,914
Share premium 82,122 82,122
Capital redemption reserve 7,051 7,051
Share options reserve 1,490 968
Foreign exchange translation reserve (1,506) (1,384)
Accumulated profit and loss reserve (80,268) (81,790)
----------------- -----------------
Total shareholders' equity 15,803 13,881
----------------- -----------------
Consolidated Statement of Cash Flows
for the year ended 31 December 2021
Year ended 31 December Year ended 31 December
2021 2020
Operating activities $'000 $'000
Profit/(loss) before taxation for the year 1,373 (4,030)
Adjustments for movements:
Amortisation of acquired intangible assets 5 6
Amortisation of capitalised development expenditure 1,872 1,933
Depreciation - owned assets 604 514
Depreciation - leased assets 93 119
Finance income (1) (16)
Finance expense 388 274
Finance lease interest costs 18 27
Share based payments expense 522 359
Paycheck Protection Program Loan forgiveness (637) -
Cash generated from/(used) in operating activities before movement in
working capital 4,237 (814)
Movement in working capital:
Decrease in inventories and sales evaluation assets 175 45
(Increase)/decrease in trade and other receivables 223 (1,187)
(Decrease)/increase in trade and other payables (1,999) 6,852
---------------------- ----------------------
Net movement in working capital (1,601) 5,710
Cash generated from operating activities 2,636 4,896
Taxation received 149 246
---------------------- ----------------------
Net cash generated from operating activities 2,785 5,142
Cash flows from investing activities
Purchase of intangible assets - (8)
Investment in development expenditure (1,754) (1,410)
Purchase of property, plant and equipment (421) (1,015)
Net cash used in investing activities (2,175) (2,433)
Cash flows from financing activities
Proceeds from borrowings 2,683 637
Finance income 1 16
Finance expense (238) (206)
Repayments of borrowings (1,738) (1,187)
Lease liability payments (103) (136)
---------------------- ----------------------
Net cash generated from/(used in) financing activities 605 (876)
Increase in cash and cash equivalents 1,215 1,833
---------------------- ----------------------
Effects of exchange rates on cash and cash equivalents (154) (14)
Cash and cash equivalents at 1 January 10,140 8,321
---------------------- ----------------------
Cash and cash equivalents at 31 December 11,201 10,140
---------------------- ----------------------
Consolidated Statement of Changes in Equity
for the year ended 31 December 2021
Total
Foreign Accumulated attributable
Capital Share exchange profit and to equity
Share Share redemption options translation loss owners of
capital premium reserve reserve reserve reserve the parent
$'000 $'000 $'000 $'000 $'000 $'000 $'000
1 January 2020 6,914 82,122 7,051 609 (1,600) (78,006) 17,090
Loss for the year - - - - - (3,784) (3,784)
Other comprehensive income - - - - 216 - 216
-------- -------- ----------- -------- ------------ ------------ -------------
Total comprehensive expense for the year - - - - 216 (3,784) (3,568)
-------- -------- ----------- -------- ------------ ------------ -------------
Contributions by and distributions to owners
Share based payments - - - 359 - - 359
-------- -------- ----------- -------- ------------ ------------ -------------
Total contributions by and distributions to owners - - - 359 - - 359
31 December 2020 and 1 January 2021 6,914 82,122 7,051 968 (1,384) (81,790) 13,881
Profit for the year - - - - - 1,522 1,522
Other comprehensive expense - - - - (122) - (122)
-------- -------- ----------- -------- ------------ ------------ -------------
Total comprehensive income for the year - - - - (122) 1,522 1,400
-------- -------- ----------- -------- ------------ ------------ -------------
Contributions by and distributions to owners
Share based payments - - - 522 - - 522
Total contributions by and distributions to owners - - - 522 - - 522
31 December 2021 6,914 82,122 7,051 1,490 (1,506) (80,268) 15,803
-------- -------- ----------- -------- ------------ ------------ -------------
1. General Information
This results announcement is presented in US Dollars ("$")
rounded to the nearest $'000 unless otherwise stated which
represents the presentation currency of the Group. The average
$-GBP sterling ("GBP") exchange rate, used for the conversion of
the Consolidated Income Statement for the 12 months ended 31
December 2021 was 1.38 (2020: 1.28). The closing $-GBP exchange
rate used for the conversion of the Group's assets and liabilities
at 31 December 2021 was 1.35 (2020: 1.37).
This results announcement has been prepared in accordance with
international accounting standards in conformity with the
requirements of the Companies Act 2006. The "requirements of the
Companies Act 2006" here means accounts being prepared in
accordance with "international accounting standards" as defined in
section 474(1) of that Act, as it applied immediately before
Implementation Period (IP) completion day (end of transition
period), including where the Company also makes use of standards
which have been adopted for use within the United Kingdom in
accordance with regulation 1(5) of the International Accounting
Standards and European Public Limited Liability Company (Amendment
etc.) (EU Exit) Regulations 2019. The consolidated financial
statements have been prepared under the historical cost
convention.
The financial statements have been prepared on a going concern
basis.
The Directors have prepared detailed income statement, balance
sheet and cash flow projections for the period to 30 April 2023
("going concern assessment period"). The cash flow projections have
been subjected to sensitivity analysis at the revenue, cost and
combined revenue and cost levels under three different scenarios.
The cash flow projections show that the Group and Company will
maintain a positive cash balance through the going concern
assessment period under the base case and all three sensitivity
scenarios. In addition, the projections and sensitivity analyses
confirm that the bank loan covenants will be met during the going
concern assessment period.
The Directors are also not aware of any significant matters in
the remainder of calendar 2023 that occur outside the going concern
period that could reasonably possibly impact the going concern
conclusion.
The Directors continue to carefully monitor the impact of the
COVID-19 pandemic, and its impact on the macroeconomic environment,
on the operations of the Group and have a range of possible
mitigating actions, which could be implemented in the event of a
downturn of the business. However, with COVID-19 driving an
increased requirement for workforces to shift to home working and
heightened concerns relating to digital security and privacy the
Group has benefited from favourable market tailwind.
The Directors have also considered the geo-political
environment, including rising inflation in some of our key markets
and the conflict in Ukraine, and whilst the impact on the Group is
currently deemed minimal, the Directors remain vigilant and ready
to implement mitigation action in the event of a downturn in demand
or an impact on operations.
On this basis, the Directors have therefore concluded that it is
appropriate to prepare the financial statements on a going concern
basis.
The financial information set out above does not constitute the
Company's Annual Report and Accounts for the year ended 31 December
2021. The Annual Report and Accounts for 2020 have been delivered
to the Registrar of Companies and those for 2021 will be delivered
shortly. The auditor's report for the Company's 2021 Annual Report
and Accounts was unqualified and did not contain an emphasis of
matter paragraph nor any statement under Section 498 of the
Companies Act 2006.
Whilst the financial information included in this results
announcement has been prepared in accordance with UK adopted
international accounting standards in conformity with the
requirements of the Companies Act 2006, this announcement does not
itself contain sufficient information to comply with UK adopted
international accounting standards.
The Annual Report and Accounts for the year ended 31 December
2021 are available on the Company's website www.corero.com
/who-we-are/investor-relations .
The information in this results announcement was approved by the
Board on 25 April 2022.
2. Key performance measures
EBITDA and Adjusted EBITDA
Earnings before interest, tax, depreciation, and amortisation
("EBITDA") is defined as earnings from operations before interest,
tax, depreciation, and amortisation charges. The following is a
reconciliation of EBITDA and Adjusted EDITDA for the periods
presented:
Year ended Year
31 December ended 31 December
2021 2020
$'000 $'000
Profit/(loss) before taxation 1,373 (4,030)
Adjustments for:
Finance income (1) (16)
Finance expense 388 274
Finance lease interest costs 18 27
Depreciation - owned assets 222 259
Depreciation - lease liabilities 93 119
Amortisation of acquired intangible
assets 5 6
Amortisation of capitalised
development expenditure 1,872 1,933
------------- -------------------
EBITDA 3,970 (1,428)
Depreciation of DDoS Protection-as-a-Service
assets charged to cost of sales 382 255
Share based payments 522 359
Unrealised foreign exchange
differences on intercompany
loan (87) 263
Other income - PPPL forgiveness (637) -
------------- -------------------
Adjusted EBITDA - for DDPaaS
depreciation, share based payments,
unrealised foreign exchange
differences on intercompany
loan and PPPL forgiveness 4,150 (551)
------------- -------------------
3. Segment reporting and revenue
The Group is managed according to one business unit, Corero
Network Security, which makes up the Group's reportable operating
segment. This business unit forms the basis on which the Group
reports its primary segment information to the Board, which
management consider to be the Chief Operating Decision maker for
the purposes of IFRS 8 Operating Segments.
The Group's revenues from external customers are divided into
the following geographies:
2021 2020
$'000 $'000
The Americas 16,042 10,988
EMEA 2,778 4,323
APAC 2,075 1,278
ROW - 288
Total 20,895 16,877
------- -------
Revenues from external customers are identified by invoicing
systems and adjusted to take into account the difference between
invoiced amounts and deferred revenue adjustments as required by
IFRS accounting standards.
The revenue is analysed for each revenue category as:
2021 2020
$'000 $'000
Software licence and appliance revenue 10,337 8,446
DDoS Protection-as-a-Service revenue 4,025 2,876
Maintenance and support services
revenue 6,533 5,555
Total 20,895 16,877
------- -------
The revenue is analysed by timing of delivery of goods or
services as:
2021 2020
$'000 $'000
Point-in-time delivery 10,337 8,446
Over time 10,558 8,431
Total 20,895 16,877
------- -------
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FR DDGDSLUDDGDU
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